nathaniel toll, braemar iron: the braemar bulk export project
DESCRIPTION
Nathaniel Toll, Managing Director delivered this presentation at the 2013 Mining South Australia conference. The conference has been produced specifically for the South Australian mining and regional development community and represents a unique opportunity to hear the latest developments from the major projects, mines and explorers in South Australia. For more information on the annual event, please visit the conference website: http://www.informa.com.au/miningsa2013TRANSCRIPT
Braemar Bulk Export Corridor
Mining South Australia
November 26th, 2013
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Braemar Infrastructure Objective
• To establish a low cost Logistics
Solution.
• To offer a viable logistics solution to
multiple iron producers
• Unlock stranded assets in the Braemar
region.
Location – Location - Location
Key Infrastructure all close
• Eastern States Power Grid
• Gas supplies
• Rail & Road Network
• Coastline
• Major Cities & Towns
3
4
Corporate Structure
Coffee House
Group Private investment vehicle of
Gordon Toll and Family
Lodestone
Equities
Global Bulk
Limited
Braemar Iron
Pty Ltd Investigating and acquiring
Iron ore assets in SA
22.5% ownership
Royal Resources
Braemar
Infrastructure
Pty Ltd
Olary Magnetite
Pty Ltd
Pricing Benchmark - CFR
China CFR Cost Curve
0
20
40
60
80
100
120
140
160
180
200
0 100 200 300 400 500 600 700 800 900 1000 1100
Cumulative Mt (wet, as delivered)
US
$/
dry t
on
ne C
FR
Eq
uiv
ale
nt
CFR (Cost & Freight) includes all costs
Mining + Process + Logistics + Freight + Royalties
Australia
India
Brazil
South Africa
China
Other
5
Mining + Process + Logistics + Freight + Royalties Large & suitable structure, Low Cost Conc, Logistics, Social & Other Infrastructure, Close to Market
Very thick, very
wide, long
intercepts of ore
Very thick, very
wide, long
intercepts of ore
Very thick, very
wide, long
intercepts of ore
Very thick, very
wide, long
intercepts of ore
6
Mining + Process + Logistics + Freight + Royalties Large & suitable structure, Low Cost Conc, Logistics, Social & Other Infrastructure, Close to Market
7
Braemar Formation Exploration
8
• Remaining undeveloped or under-developed DSO
deposits with Triopoly
• Other deposits are poor quality
• Concentration generates quality products with low impurity.
Concentration adds ‘Value’ not just cost • 68-70% versus 56-58% Fe (current typical Pilbara product)
• Price premium can offset the cost of concentration
• Magnetite concentrate gives customer ‘Energy’ as well
as quality Fe
• Concentration allows use of more cost effective mining
methods compared with DSO
Why IO that needs Concentration
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Concentrate Process Flow
Diagram via Rail
Operation Mine
Waste
Crush
&
Grind
Concen-
trate
Tailings
Dewater Stock-
Pile at
mine
Load
on Rail Transport
To Port
Load
on
Barge
Trans-
ship
Load on
Export
Ship
Stock-
Pile at
Port
Unload
at
Port
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Concentrate Process Flow
Diagram via Slurry
Mine
Waste
Crush
&
Grind
Concen-
trate
Tailings
Dewater
Operation
Load on
Export
Ship
Slurry
Concentrate
Process water
delivery
Mine Site FPSO Infrastructure Corridor
Technology subject to Patent Application
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12
Mines
Control and
Maintenance base
Pump
Stations Floating,
Processing,
Storage, and
Offloading Facility
Braemar Bulk Export Corridor Diagram
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Blyth KP85
Contents of the Corridor
FPSO
KP0
Process Water Pipelines
Electricity Transmission Line
Communications Cable
Service Road KP
Mine
Sites
KP339 Electricity
Transmission Line
Blyth Sub Station KP52 – This substation will provide power to the FPSO and various corridor facilities
such as pump stations west of Burra.
Grid Connection to Mines KP133 – Potential connection point between the Burra power station and the
275kv “Canowie – Robertstown (F1926)” transmission line.
Connect to Grid KP133
Slurry Pipelines
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Preferred Corridor Route
Floating, Processing, Storage, Offloading
(FPSO) Configuration
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3rd Party Services
Provisioned By BIPL
• Process Water (Seawater)
• Concentrate delivery to export vessels
• Mine Site Access
• Power Transmission
• Communications Infrastructure
Producing concentrate allows for more cost effective infrastructure
Port
DSO Port
$3.5B
Concentrate Port
$0.3B
Logistics
DSO Railway
$7.5M/km
Concentrate Pipeline
$1.7M/km
Why Concentrate Pipelines
Cost comparison for 25-30Mtpa facility
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Producing concentrate has a lower environmental impact
Port
DSO Port Large Stock Piles
Concentrate Port Stockpile in FPSO
Logistics
DSO Railway Noise, stockpiles, continuous land
disturbance, requires groundwater
Concentrate Pipeline Almost silent, no stockpiles,
temporary land disturbance,
sea water used for process
Why Concentrate Pipelines (cont.)
Cost comparison for 25-30Mtpa facility
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Regional and State Benefits
• Employment opportunities
– 500 jobs during construction
– 1500-1700 jobs in mines and infrastructure
for every 25 mtpa of capacity *Mine and infrastructure
– Multiplier effect 2.5-3x the jobs created to
support increased workforce and support
operations
• Infrastructure
• Royalties = $125 million/year
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Project Status
• Conceptual feasibility study complete
• Approval process agreed with SA government
• Easement/Land access strategy developed with SA government
• Case management team assigned by government
• Community engagement started
• Major Development Declaration
• Foundation customer: Royal Resources MOU
• Seeking funding for Pre-feasibility studies and approvals
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• July 2013
• Demonstrate
economics
• Certainty in
land access
and approval
pathway
• Produce
investor
presentation
• 1.5 Years
• PFS Complete
• Resource Definition
• Name brand
consultants
• Project Scope
Defined
• Land access
secured by
purchases and
options
• Initial design size
optimized
• Environmental
studies conducted
• PER, EIA, or EIS
prepared
• 0.5 - 1 Year
• DFS Complete
• Definitive
Engineering
• Definitive
Project Plans &
Contracts
• Control cost
estimates
• Procurement
packages
developed
• Final land
payments
• 2.5 year
construction
• First
Production as
early as Late
2018
• 30+ year
operation
• Additional
slurry lines and
process water
lines added to
corridor as
required
Pre-
Feasibility
Study
Appraise and
Define
Opportunity
Define
Project Execute Operation
Robust Business
Case Established
Project Scope
Defined
Project Ready
To Execute
Project Go Ahead
Define
Scope
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